5 Golden Rules for Starting Your Own Farm

Rule #1: Avoid Debt!
Why is this? Farmers aren’t immune to uncertainties and risks. Legions of great producers have abandoned their farming dreams simply because they couldn’t pay their debt when the bank came calling. Debt (borrowing money, with interest) allows you to accelerate your goals, turning dreams of tomorrow into realities of today. Agriculture is not money spinning business. It takes time (months or even years!) to grow. Most of your initial investment goes into fixed assets. It is therefore best to start small with your saving or grant from family and friends. This will ease you of the pressure that comes with taking a loan.

So does this mean ‘never take on debt’? Certainly not. There are plenty of times when leveraging assets makes sense. As you gain farming experience, and create reliable cash flow in your business, these opportunities (or necessities) will become clearer. In the meantime, however, embrace this generalization: avoid debt as much as possible.

Rule #2: Identify Your Market Before You Start Farming

You want to raise cattle, grow watermelons, or start a poultry business. Before you start, take the time (lots and lots of time) to figure out where you’re going to sell your products, who is going to buy them, and how you’re going to do it. Once you’ve done this, create a backup plan. Then, come up with another backup plan. Chances are you’re going to need them.

Small and niche producers spend an enormous amount of effort finding their customers. This is every bit as important as growing the food to begin with, because without appropriate sales channels, fresh produce will quickly languish. Agricultural products are mostly perishable. Best you sell them fresh. For example, when your watermelons ripen at the exact same moment, you’ll need a place to sell them—and fast. Have a solid marketing plan prepared well in advance.

Rule #3: Grow Your Passion
Everyone knows that farming is hard work. So do yourself a favor: grow something that you love. If you grow what you’re passionate about, it will help mitigate those difficult days when things don’t go your way. It may seem like common sense, but we often find our decisions driven more by finances, tradition, or inertia than by something we truly love.

Rule #4: Get Practical Experience

Experience doesn’t come with a Bachelor’s Degree in Agriculture, and it certainly doesn’t come from a book. Agriculture is filled with uncertainties, surprises, and intellectual challenges. My strong advice is: learn directly from practicing farmer. This isn’t theoretical knowledge. Go work for a farmer that is in your area of interest. Work for free if he is not ready to pay you!Just get practical experience by all means. Note: go to a successful practicing farmer

Rule #5: Have a workable business plan

A business plan is a very important strategic tool for farmers. A good business plan not only helps successful farmers to focus on the specific steps necessary for them to make business ideas succeed, but it also helps them to achieve both their short-term and long-term objectives.

I will be discussing how to write a workable business plan later